Singapore | January 07, 2025 – In a strategic move to accelerate the maritime industry’s transition to low-carbon fuels, Straits Bio-LNG Pte Ltd (Straits Bio-LNG) and Bureau Veritas (BV) Malaysia have signed a Memorandum of Understanding (MOU). The partnership establishes a strategic alliance focused on the production and certification of ISCC EU-certified sustainable bio-methane, a critical component in the decarbonization of the global LNG supply chain.
The collaboration centers on the development of a sustainable bio-methane liquefaction facility. Through this MOU, both parties have committed to a comprehensive framework designed to ensure regulatory compliance and high-tier sustainability standards across the entire supply chain.
Driving Decarbonization through Bio-LNG
As the shipping industry faces mounting pressure to meet IMO 2030 and 2050 greenhouse gas (GHG) targets, bio-LNG has emerged as a frontrunner due to its “drop-in” compatibility with existing LNG-fueled vessels. The partnership focuses on three core pillars:
- ISCC EU Compliance: Establishing a rigorous framework to ensure all production meets the International Sustainability and Carbon Certification (ISCC) standards required for the European market.
- Regulatory Alignment: Proactively adapting sustainability practices to meet evolving global and regional environmental regulations.
- Industry Benchmarking: Promoting certification benchmarks that enhance market trust and credibility for bio-methane as a marine fuel.
The agreement was signed by Dato’ Mohd Nizam Abdulmalik, Country Chief Executive for Bureau Veritas Malaysia, and Tan Soo Koong, CEO of Straits Bio-LNG.
“Together, we are advancing credible pathways towards a low-carbon energy future,” the partners noted during the signing ceremony.
Project Spotlight: The Muar Liquefaction Facility
Straits Bio-LNG is currently developing a specialized biomethane liquefaction, storage, and export facility in Muar, Peninsular Malaysia. Located within the Maharani Energy Gateway, the project is strategically positioned along the Straits of Malacca, one of the world’s busiest shipping lanes, enabling 24/7 ship-to-ship (STS) transfers without vessel deviation.
The facility aims to produce 250,000 tonnes of bio-LNG per year by processing sustainable feedstocks. This scale of production is expected to significantly fill the regional supply gap for clean, renewable marine gases.
Transforming Agricultural Waste into Marine Energy
For agriculture-rich Southeast Asia, bio-liquefied natural gas (bio-LNG) has emerged as a transformative solution to reduce fossil fuel dependency by converting waste into a high-value energy resource. As regional demand for LNG continues to grow rapidly, innovative infrastructure and financing are becoming the essential groundwork for a viable transition to a low-carbon future.
By utilizing feedstocks such as Palm Oil Mill Effluent (POME) and Empty Fruit Bunches (EFB), projects like the Muar facility not only provide a carbon-neutral fuel source for the global fleet but also address local environmental challenges by capturing methane emissions from agricultural by-products.
About Straits Bio-LNG Pte Ltd
Headquartered in Singapore, Straits Bio-LNG is led by industry veterans with deep expertise in shipping, LNG terminal operations, and offshore mooring. The company’s mission is to use bio-methane to decarbonize LNG, viewing it as the most cost-competitive and abundantly available alternative fuel for the energy transition.
About Bureau Veritas
Bureau Veritas is a global leader in Testing, Inspection, and Certification (TIC) services. Founded in 1828, the Group supports clients across the marine and offshore sectors in navigating the complex requirements of quality, health, safety, and environmental protection. BV is a key partner in the global energy transition, fostering trust through independent verification and technical expertise.
Source: Bureau Veritas | Straits Bio-LNG